Surprise

Did you know that as corn prices go up, feedlots don't buy as many calves? Duh, no shit.<br />n<br />n<a href="http://www.tulsaworld.com/business/article.aspx?articleID=20080420_5_E2_spanc32863">Record corn prices affect calf purchases</a><br />n<br />n<blockquote>U.S. feedlots slashed purchases of young cattle 11 percent last month, more than expected, as costs for corn-based feed surged and losses widened.<br />n<br />nFeedlots bought 1.736 million young animals in March, down from 1.96 million a year earlier, the U.S. Department of Agriculture said Friday in a report. The average estimate of 10 analysts surveyed by Bloomberg was for a 7.6 percent drop.</blockquote><br />n<br />nI find this as no surprise. What the hell do you expect them to do. This really worries me since I sell calves but there is nothing I can do about it except weather the storm. Like I've said before it wouldn't surprise me if you see cow-calf producers like me having to hold on to the calf longer and put more weight on it with grass so the feedlots don't have to put so much corn through them. I am looking at working that way in my operation. Time will tell.